Wall-to-Wall Carpet over Hardwood

December 28, 2015

I have a coverage question that has arisen with a partial loss house fire on an AAIS Form HO3. The home was an older dwelling that had hardwood floors original to the house that had been covered by wall-to-wall carpet. All hardwood flooring was ruined due to the water used to extinguish the fire. The insured is demanding that we lay new hardwood flooring throughout the house and install wall-to-wall carpet directly on top of the new hardwood flooring. At first glance, this seems ridiculous because we do not want to install two finish layers of flooring (not to mention the fact that we would be nailing tack strips into that new hardwood flooring to install the carpet). However, after some reflection, I understand the insured's point of view. The house would potentially have a lower value without hardwood flooring, and both flooring surfaces were in place immediately prior to the loss.

I cannot find any policy language that would speak to this issue, other than the fact that carpet would be depreciated to ACV. Do you know of any exclusion or policy language that would speak to this issue? It seems logical that we would not have to install more than one finish layer of flooring (or any other surface in the home, for that matter). However, barring policy language or precedent, I cannot find any basis for denying the request for both hardwood flooring and carpet.

Thanks for any thoughts you may have.

Pennsylvania Subscriber

There is nothing in the AAIS policy that precludes restoring the insured's hardwood floor then putting wall-to-wall carpet over it. It is what he had before the loss, and in order to properly indemnify him he is entitled to both hardwood and carpet. Many people add wall-to-wall carpet for aesthetic purposes or warmth. The insured is not gaining anything he did not already have, although it is two finish layers.

 

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